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Healthcare Management & Human Resources

By People Excellence Team
​Posted 07 March 2017
​Revised 15 October 2019
Strategy & Policy Insights ►

Introduction
Among the major trends affecting health organizations are the emergence of new competitors, increase inpatient occupancy rates, and capital shortages. The development of appropriate changes in the health care sector in Saudi Arabia has received much attention during the past decade so that strategic planning is now well-accepted. However, implementation of strategic plans often ends with the development of goals and objectives, but without the proper methods of implementation or monitoring results. Implementation appears to be a major difficulty in the overall strategy process.
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Health Strategy & Human Resources 
Human resources functions to a certain extend are not playing a major role to the formulation and implementation of health organization strategy. The health strategic management of human resources is concerned with ensuring that qualified health care personnel are available to staff the portfolio of business health units.

This assurance means that qualifications for operation of business health units must be determined; appropriate staff must be selected and recruited; development of manpower plans to meet future needs must occur; and adequate rewards must be provided to attract and retain valuable employees.
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Matching Human Resources to Strategic Objectives
There are a number of human resources issues that are more or less important at various points in an organization’s life-cycle. The growth phase poses problems and challenges different to those of the decline phase and thus requires different human resources strategies. A health business unit positioned in a growth phase with a strategy in investment, risk taking, and aggressive pursuit of market share will need different competencies. All too often, human resources are excluded from both the process of strategy formulation and implementation.

The implementation of health strategies requires appropriate human resources strategies and tactics. Ignorance of the appropriate linkages between business strategies and human resources may mean organizational failure even if the business strategy itself is appropriate.

Examples of Management Decisions Corresponding to Human Resources Implications

Management Decision
  • Pursue low-cost competitive strategy
HR Implication
  • Lower staff compensation and provide training to improve efficiency

Management Decision
  • Pursue quality differentiation competitive strategy
HR Implication
  • Recruit top-qualify candidates, provide high compensation and training

Management Decision
  • Pursue growth through acquisition strategy
HR Implication
  • Selection from targeted organization, outplacement of redundant staff, training new staff and compensation adjustments

Management Decision
  • Purchase new technology
HR Implication
  • Staff training

Management Decision
  • Offer new services / product lines
HR Implication
  • Recruit physicians and other medical staff

Related Article

HR Strategic Framework

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